Operator News
UK – Rank reports 11 per cent increase across its gambling estate
By Phil - 20 October 2023
British casino and bingo operator Rank Group has reported an 11 per cent increase in its gaming revenue for the first quarter ended 30 September 2023 to £179.6m.
On a channel basis, digital revenue was up seven per cent and venues like-for-like revenue was up 12 per cent. Grosvenor venues like-for-like revenue grew by 13 per cent, driven by a nine per cent increase in casino visits and a four per cent increase in spend per visit. London revenue grew by eight per cent, with the rest of the UK growing by 16 per cent. Average weekly revenue was £6.4m, up 10 per cent on Q4 2022/23.
Mecca Bingo venues maintained the momentum built up in the second half of 2022/23 with like-for-like revenue growth of 11 per cent, driven by a four per cent increase in customer visits and a seven per cent increase in spend per visit. Enracha venues, Rank’s Spanish bingo business, continued to deliver strong revenue growth, up nine per cent. Digital revenue grew by seven per cent with growth across both the UK business, which was up six per cent, and the Spanish operations, up 15 per cent. Revenue for the two key UK digital brands, Grosvenor and Mecca, were up 14 per cent and nine per cent respectively.
Rank said the trading environment continues to be challenging with continuing high inflation and interest rates and consumer discretionary expenditure remaining under pressure. However, following a positive performance across our businesses in Q1, we are on track to deliver 2023/24 full year revenue and profit growth in line with expectations.
John O’Reilly, Chief Executive, said: “I am pleased to report that Rank has made a strong start to the year. After an encouraging second half of 2022/23, we have maintained the momentum through the first quarter of 2023/24 and have made good progress in driving revenue and profit growth across the Group. Going forwards, we remain focused on delivering the key growth initiatives within our digital business and preparing our UK venues for the critical modernising reforms in the Government’s review of the gambling legislation. These reforms, which are planned to be implemented by next summer, will help Grosvenor and Mecca to better meet the needs of our existing and prospective customers.”
